Exam 10: Product Design and Development

Launching a "new-to-the-market" product is very risky and only about 25% of products created fall into this category.

A product concept:

Within the footwear industry there are several groups of customers, each of which is called a(n) _____.

What is a market segment?

The approach used to determine when your total sales revenues exactly equal your expenses is called _____.

During the product development process of _____, a product development team is involved in design work to ensure that the product will be safe.

His job, according to Doug Hall, head of a Cincinnatibased idea factory, is to turn old goods into new services.

BetterBuilt Products, a large machine shop in the Pacific Northwest, employs 138 people in design, accounting, sales, purchasing, production, and delivery. The company’s machined products are of the highest quality, production almost always stays “on track,” and delivery generally meets or exceeds customer expectations. Management regularly looks for ways to improve effectiveness and efficiency of operations by reducing production/cycle time and cutting costs. -BetterBuilt provides time and place utility but not form utility.

A(n) _____ protects an idea from being stolen by someone else.

Let’s say you want to open a shoe store that will specialize in high-end shoes. But before you do, you want to determine how many pairs of shoes you have to sell in the first year to break even (have no profit or loss). You also want to know what your profit will be in year two. You have been busy estimating some revenues and costs. Here is what you have so far: Cost (to you) per pair of shoes \8 0 Sales commission per pair of shoes \1 0 Managers’ Salaries \4 20,000 Rent \1 20,000 Advertising \2 0,000 Insurance \1 6,000 Miscellaneous fixed costs \2 4,000 Selling price per pair of shoes \1 60 -If you end up selling 12,000 pairs of shoes the first year, how much profit will you make

After identifying a group of potential customers, your next step is to _____.

Psychographics is an essential part of sales forecasting.

To come up with good businesses ideas you should do all of the following except _____.

You can even get a patent on something that is useless.

Customers buy products to satisfy _____ needs and expect to derive some value or _____ from them.

When Just Born came out with its Peeps marshmallow Easter decorating kits the company was releasing a "new-to-the-market" product.

The breakeven point in units is calculated using this formula: fixed costs divided by contribution margin per unit.

An industry is a group of related businesses.

Breakeven point in units is the excess of revenue per unit over variable cost per unit.

When you buy a product and get a receipt, you are receiving a form of ownership utility.